France: Travel to Work Incidents Not Counted in Severance Indemnity
On 11 March 2026, the French Supreme Court ruled that sick leave taken due to an accident an employee suffered travelling to or from work should not be considered when calculating severance indemnity.
Under French law, the calculation of severance indemnities which are due upon dismissal is namely based on an employee’s length of tenure. Identifying what types of absence from work can or cannot be considered in the calculation may have a significant impact on the amount due.
Certain types of absence cannot negatively impact the calculation and namely duly acquired holiday leave, maternity/adoption leave and, in principle, any sick leave following a work accident or occupational illness.
The point argued before the French Supreme Court was whether sick leave taken following an accident suffered by an employe while travelling to and from work (“accident de trajet”) should be treated in the same way as a work accident or instead as normal not work-related sick leave. The Court decided that it should be treated the same as normal sick leave.
It should be noted that certain Collective Bargaining Agreements may contain more favorable terms and as such would apply.
Key Action Points for Human Resources and In-House Counsel
Ensure your payroll is properly set up to calculate severance indemnities.
